The Pacific Life Assurance Co., Ltd. ("the Company", "we", "our", "us" or "PLA") offered participating insurance plans under which policyholders share in the profits (if any) from the relevant participating fund(s) or product group(s) as determined by the Company. We are committed to ensuring a fair and equitable sharing of profits between policyholders and shareholders.

We determine and declare dividends and dividend accumulation rate annually in accordance with all relevant legislative requirements, actuarial standards, and the Company’s Corporate Policy on Governance of Participating Business, which has been approved by the Board of Directors (“Board”), after considering the advice and recommendation of the Appointed Actuary and the Company's Participating Business Committee (“PBC”). The Board oversees the fair treatment of policyholders, equitable balancing of interests between policyholders and shareholders, and the sustainable management of the participating fund(s). The Appointed Actuary provides recommendations on the allocation of distributable surplus/profits and the declaration of dividends and dividend accumulation rate. The PBC reviews and endorses the proposal before submitting them for Board approval.

Determination of Dividends
The amount available for distribution is based on past experience and the future outlook of the participating business. Key factors include investment returns, which include interest earnings, the outlook for interest rates, and the effects of capital gains and losses on bonds due to changes in interest rates and/or changes in credit spreads. Smoothing may be applied where appropriate to reduce volatility while remaining fair to different generations of policyholders. Other factors, including policyholders’ reasonable expectations, may also be considered in dividends’ determination.

Investment Philosophy and Strategy
Our investment philosophy is to deliver stable and sustainable returns in line with the product's investment objectives and PLA's business and financial objectives, while supporting the long-term interests of policyholders and the Company’s overall business and financial goals. Our current investment strategy for assets supporting the participating business is to primarily allocate to bonds and bank deposits to minimize investment return volatility and achieve appropriate risk-adjusted returns.

Changes to Dividends and Communication
Dividends are not guaranteed and may change depending on market conditions, economic outlook, experience, or other relevant factors. Any material changes will be communicated to policyholders with clear explanations of the underlying reason(s) and potential impact(s) (including Policy Anniversary Statements and Benefits Projection).